Microsoft (MSFT) Could Drop 10% if Mulally Not Selected as CEO; BofA/Merrill Lynch Cuts to Underperform

(Updated - November 18, 2013 8:22 AM EST)

BofA/Merrill Lynch downgraded Microsoft (NASDAQ: MSFT) from Neutral to Underperform with a price target of $36 (unchanged). Analyst Kash Rangan ties recent outperformance to optimism about Microsoft's new CEO candidates, and potential for divestitures and restructuring. With this in mind, he sees 10% upside in the stock if Ford's (NYSE: F) Alan Mulally is chosen and 10% downside if Kevin Turner, Stephan Elop, Satya Nadella, or Tony Bates become CEO, as divestitures become "distant realities."

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $37.84 yesterday.

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